HCMC racing to build world-class transport, logistics network

HCMC is launching multi-billion-dollar infrastructure projects, including ring roads and sea-bridges, to create an integrated logistics hub, aiming to slash costs and boost regional economic connectivity.

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Container ship on the Saigon River (Photo: SGGP)

Forging multimodal transport network

As the undisputed economic, commercial, and logistics nerve center of the country, HCMC serves as the primary economic engine for Southern Vietnam. It occupies a unique strategic position on the national transport axis, bridging the vital Southeast and Southwest regions while also providing a direct link to the Central Highlands and Central Vietnam. This geography gives HCMC a powerful advantage, positioning it to become a regional multimodal logistics hub that seamlessly integrates air, sea, road, rail, and inland waterway transport.

However, for HCMC to fully capitalize on its potential, a synchronized and fully integrated regional transport infrastructure is paramount to alleviating the immense pressure on its already gridlocked urban core. In recent years, the city and its neighboring provinces have proactively launched a series of landmark projects, laying the groundwork for a massive network of expressways, ring roads, and river-spanning bridges.

A top priority is the construction of Ring Roads 2, 3, and 4. This system will form the skeletal framework of the new network, creating a closed loop that rationally channels traffic and diverts pressure from the city's central arteries. Once complete, these ring roads will enable cargo to flow directly from the Southwest and Southeast regions to the Cai Mep – Thi Vai International Seaport or the new Long Thanh International Airport, entirely bypassing HCMC’s congested center.

In parallel, a web of arterial expressways is taking shape, including the HCMC – Long Thanh – Dau Giay, Bien Hoa – Vung Tau, Ben Luc – Long Thanh, and HCMC – Trung Luong – My Thuan routes. As this network nears completion, HCMC will be cemented as a strategic transit point, dramatically cutting shipping times and saving export businesses, particularly those in the Mekong Delta, millions of dollars annually.

Beyond highways, several large-scale bridges are being jointly developed by HCMC and Dong Nai Province. Cat Lai Bridge, with an investment of VND19.5 trillion (US$765 million), will open up a new corridor for industrial and urban growth.

Dong Nai 2 Bridge (VND10.945 trillion or $429 million) will bolster capacity at the city’s eastern gateway, while Phu My 2 Bridge (VND21.484 trillion or $842 million) will provide a direct link to Hiep Phuoc Port urban area. All three are designed as 8-lane structures, built to handle high-volume freight and forge stronger links between the nation’s two largest industrial hubs, namely HCMC and Dong Nai Province.

A key highlight of the next phase will be the 45.5km southern coastal road, which will feature the Can Gio sea-crossing bridge. At over 10km long and with a total investment of VND62.231 trillion ($2.44 billion), it is set to become Vietnam’s longest sea-crossing bridge. This monumental project will create a new coastal logistics corridor, drastically shortening the journey from the Southwest region to the Cai Mep – Thi Vai Port complex.

Luong Minh Phuc, former director of HCMC’s Transport Construction Investment Project Management Board (TCIP), notes that while roads remain the “backbone,” integration is key. HCMC is now studying the revival of the Trang Bom – Cat Lai Railway and developing the Bien Hoa – Vung Tau line to connect directly to the Cai Mep – Thi Vai Port.

The $3.5 billion Thu Thiem – Long Thanh Urban Railway will create a strategic passenger and cargo link between the two international airports of Tan Son Nhat and Long Thanh, while the region’s dense river network is being leveraged for efficient container barge services.

Vision: Inter-regional logistics hub

This massive investment in transportation is a strategic imperative. In a globalized economy, logistics infrastructure is a key determinant of national competitiveness, especially when Vietnam’s logistics costs currently hover between 16-18 percent of GDP, significantly higher than the global average of 10-12 percent. A mere one percent reduction could save the economy billions of dollars each year.

During a recent survey of the seaport system, Chairman of the HCMC People's Committee Nguyen Van Duoc emphasized that the Cai Mep – Thi Vai Port cluster is the most critical import-export gateway for the entire South. “However, to join the ranks of the world’s elite transshipment hubs, we need a comprehensive development strategy with a clear roadmap,” he stated.

This roadmap includes:

  • Short-Term: Completing basic infrastructure, expanding deep-water container terminals, and building a dedicated 100-hectare transshipment zone with semi-automated systems.
  • Medium-Term (A Southeast Asian Hub): Adding 3-4 more deep-water berths to reach a capacity of 20-25 million TEU/year. Cai Mep - Thi Vai must transition to a smart port model, applying AI in operations, automated container yards, and blockchain for electronic documents. Meanwhile, the logistics center will be expanded to 500ha, integrating functions of distribution, processing, packaging, and cross-border e-commerce. Another goal is to complete the Bien Hoa – Vung Tau Railway and a comprehensive barge network to ensure 100 percent multimodal connectivity for all terminals.
  • Long-Term (A Top 10 World Port): To achieve this status, the complex will need a full system of terminals with a capacity of 30-35 million TEU/year. The vision includes transitioning to a “smart port” model using AI, automated yards, and blockchain, and developing a comprehensive service ecosystem with maritime finance, ship repair, and a cross-border digital freight exchange. The ultimate goal is to become a pioneering, regional model for a “net-zero port.”

To support this, HCMC plans to develop a 200-300 hectare logistics center offering bonded warehousing as well as cold storage, and begins expanding into financial and maritime insurance services. Capacity should reach 12-15 million TEU/year; the international transshipment rate should be 25-30 percent; 30 percent of terminals should apply automation; logistics should account for 12-14 percent of the regional GDP.

To get the ball rolling, the city will prioritize capital for deep-water berth projects, connecting railways, and logistics centers; invest in smart ports, comprehensive digitization, and automation; mobilize diverse investment resources through PPP, BOT, infrastructure development funds, project bonds, combined with land value capture; apply emission reduction technology, use renewable energy, meeting international standards; connect with global shipping lines, and form alliances with regional transshipment ports.

Chairman Bui Van Quan of the HCMC Goods Transport Association is optimistic. “With these solutions,” he remarked, “HCMC is poised to create a powerful inter-regional economic and logistics corridor. The application of digital technology will optimize supply chains, cut costs, and drive a new era of modern logistics for the entire nation.”

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